Over 89% of public pension funds invest in private equity. These sound investments help secure the retirements of millions of teachers, firefighters, police officers, and other public servants across our country.
Economists & Academics
In 2021, private equity outperformed every other investment option and delivered a median annualized return of over 15% after fees. Learn more from respected academics and economists about how private equity represents a critical asset class for diversified portfolios.
Private Equity Outperforms All Other Investment Options
Even after fees, private equity generated an average annualized return of 15 percent in 2021. A recent study published by Cambridge Associates found that over the last decade, “institutions with higher private investment allocations experienced higher returns historically. And, those returns tended to be less volatile.”
More than 30 Million Public Servants Depend on Private Equity Returns
AIC President & CEO Drew Maloney and AIC Chair of the Board Pam Hendrickson recently discussed the results of the AIC’s Public Pension Report showing that private equity delivered the strongest returns for public pensions portfolios. “We all know that pension funds are struggling to meet their obligations around the country, and we have 30 million Americans that are dependent on these retirement benefits. You’ve got firefighters and policemen, you have teachers … janitors, cafeteria workers, bus drivers. All these people are dependent on these returns in order to have a comfortable retirement and for us being able to deliver year after year one of the best investment performances for private equity inside of a pension fund is really an amazing achievement.”